Status report 2/27/11

Tax Status:

Several people have asked about tax deductibility of their
contributions. The IRS gives us the benefit of the doubt and allows our
contributions to be tax deductible until our tax-exempt status is determined s
long as we file in a timely manner. That includes all contributions to date. We
have sent out receipts for all contributions. If you need duplicates, let us
know and we will get them out as soon as possible.

It appears that the Secretary of State hasnŐt received our
request to revise our Articles of Association, based on the fact that they
havenŐt cashed our check to pay the fee, so we will have to resubmit it.

Legal Status:

UC has filed an updated request for a Demurrer based on our
revised request for a Writ of Mandate. The Judge has scheduled a hearing on the
issue for March 24th. UCŐs main argument is still that we have not
established that UC is required to provide us with medical coverage.

We have posted the filings on our website in the legal
filings archive. In the lower right portion of the site you will see the
heading "Information Archive" with a number of pull down lists under
it. In the third row list, you will see a heading "Legal filings - Newest
-> Oldest". Click on the arrow at the right end and a list will drop
down. The first six entries at the top are the various filings.They all start with the date 2/25/11.
Click on any one of them and the appropriate filing will come up. The second
and third entries are probably the most interesting. We suggest you skip the
file with the appendices because it is exceptionally large.

Financial Status:

We have placed the final $50,000 of our $150,000 commitment
to our lawyers in their escrow account.We are planning on waiting until after the Demurrer hearing to decide if
we need to begin soliciting additional funds for a trial.